Cisco may buy WiMax Player

Cisco Systems Inc. is close to buying a company that makes WiMax base stations, according to an industry report. The move would be Cisco's first foray into the wireless technology.

Cisco, by far the largest networking equipment maker, would not comment on the report, but a spokesman did refer to Cisco's online position paper on WiMax. While the paper notes that "WiMax will be one of several high-speed wireless WAN technologies seeing broad deployment," it adds, "Cisco has no current plans to build WiMax base stations or base stations using any other WAN radio access technology."

The paper notes that Cisco will work with partners and also provide IP technology for next-generation base stations, while its partners will provide the radio components. Also, Cisco plans to provide IP infrastructure to network the base stations together, the paper says.

The wireless news Web site Unstrung reported that two unnamed industry sources said the purchase could take place in a matter of weeks and that Cisco had narrowed down the potential list of targets to four companies: Alvarion Ltd., Aperto Networks Inc., Navini Networks Inc. and Redline Communications Inc.

Craig Mathias, an industry analyst at The Farpoint Group and a Computerworld columnist, said that it makes sense -- but it's "not essential" -- for Cisco to be involved more directly in WiMax. He said any of the four companies being named would be solid choices. Mathias said he had not heard any rumors, however.

"Every company is on Cisco's list to buy all the time," he noted. "They buy according to what's going to provide the biggest return on investment."

Last month, Cisco announced plans to buy Cognio Inc. in order to acquire its wireless network management technology. That would be Cisco's first acquisition of its current fiscal year but its 122d purchase overall.